UAE Free Zones
UAE Free Zones are specially designated areas designed to promote international business by offering various incentives and benefits to investors. These zones operate under their own set of regulations, independent of UAE federal laws, particularly concerning taxation and foreign ownership. With more than 40 free zones across the UAE, each caters to specific industries such as technology, media, finance, and logistics, offering tailored facilities and services.
Why Are Free Zones Ideal for Business?
- 100% Foreign Ownership
- Tax Benefits
- Ease of Setup
- Repatriation of Profits
- Industry-Specific Ecosystem
- Simplified Visa Process
- Networking Opportunities
- Access to Global Markets
Legal Structures for Company Formation in UAE Free Zones
The legal structures for company registration in UAE free zones have been adjusted to suit various types of businesses and investment levels. Here is an overview of the main types of companies and the relevant legal frameworks in the UAE's free zones:
Free Zone Establishment (FZE)
A Free Zone Establishment (FZE) allows a single shareholder to form a company. The shareholder can either be an individual or a corporate entity.
Branch Of A UAE Company
A branch office setup is an extension of an existing company. Parent company already holds a license in the UAE, and the branch serves as an expansion of the local business.
FZCO (Free Zone Company) ( FZ- LLC)
An FZCO is a free zone company with multiple shareholders, similar to a partnership structure. It can have up to 50 individual or corporate shareholders.
Branch Of A Foreign Company
A branch is a separate legal entity controlled by the parent foreign company. It is used in the UAE as a marketing extension of the parent company.
Popular Free Zones in the UAE
Jebel Ali Free Zone
(JAFZA)
Ideal for international trade, advanced manufacturing, and logistics.
Dubai Multi Commodities Centre (DMCC)
Known for trading, commodities, and financial services.
Sharjah Airport International Free Zone (SAIF Zone)
Offers cost-effective solutions for small to medium-sized enterprises.
Ras Al Khaimah Economic Zone
(RAKEZ)
Provides flexible packages for startups and large enterprises.
Can Free Zone Companies Operate in Dubai Mainland?
Generally, free zone companies cannot conduct business directly in the Mainland, especially those targeting consumers (B2C). However, businesses that sell to other businesses (B2B) can operate in the Mainland without restrictions. If a free zone company wants to do business in the Mainland, it must obtain specific licenses and documents from the Department of Economic Development (DED). Alternatively, they can partner with a DED-licensed distributor to operate in the Mainland. Free zone companies can also establish a civil company, a limited liability company (LLC), or set up a branch office to do business in the Mainland.
Essential Documents Needed to Begin the Business Setup Process
Let’s get your business off to a successful start! Make sure you have all the required documents to simplify the setup process!
- Passport copies of shareholders and managers.
- Residence Copy / Entry Stamp / Visit Visa Copy.
- Business plan (optional).
- No Objection Certificate (NOC)
A Complete Guide to Setting Up a Free Zone Business in the UAE
Your company setup checklist is ready. Let’s start your company journey to success!
- Decide on your business idea.
- Select the ideal UAE location for your company.
- Choose the legal structure for your business.
- Name your business.
- Apply for Initial Approval.
- Prepare necessary legal documents.
- Lease office space.
- Obtain required licenses.
- Open a corporate bank account.
- Apply for the necessary visas for your company.
- Register for VAT (if applicable).